Components of EDI The following components and tools are necessary for performing EDI.

Trade Agreement - a legally binding trade agreement between you and your trading partner. Standard Document Format - the standard agreed upon format for the document to be electronically transmitted. EDI Translation Management Software - software used to convert the document your application's format into the agreed upon standard format. For optimum performance the translation software should be on the same platform as your business application. Communications Software - a programming tool that enables you to write communications protocols, or a separate application. It can be a module to the translator or a separate software application. Modem - a hardware device used to transmit electronic information between computer systems. The higher the baud rate, the faster the communications will be. VAN - stands for Value Added Network. A network to which you can connect to transmit data from one computer systems to another. One network can act as a gateway to another. Point-to-Point - a direct communication link from one computer to another. Some trading partners offer a direct connection to their EDI computer. Trading partners may opt for this method of communication instead of using a VAN.

Advantages of EDI Save Money The cost of paper and paper processing is incredibly high compared to a properly implemented EDI program. RJR Nabisco estimates that processing a paper purchase order costs the company $70. Processing an EDI purchase order reduces the cost to a mere 93 cents. End Repetition If your trading partner wants a copy of a document, instead of calling you they simply check their mailbox. This results in a great time savings from not having to copy and fax/mail copies of business documents. Save Time EDI also saves time over paper processing since the transfer of information from computer to computer is automatic. There is no need to rekey information with EDI. And the chance for error drops to near zero, with no data entry.

Improve Customer Service The quick transfer of business documents and marked decrease in errors allow you to do business faster and more efficient. KMart is an example of a retailer that implements a Vendor Stock Replenishment (VSR) program. With VSR, the KMart warehouse sends stock as their EDI system reports it and automatically bills the client. It can cut weeks from the order fulfillment cycle and ensures that product is always on the shelf. Expand Your Customer Base Thus with improved customer service, you can ultimately expand your customer base. Many large manufacturers and retailers are ordering their suppliers to institute an EDI program. So, when evaluating a new product to carry or a new supplier to use, the ability to do EDI is a big plus.

Disadvantges of EDI Too Many Standards There are too many standards bodies developing standard documents formats for EDI. For example your company may be following the X12 standard format, while your trading partner follows the EDIFACT standard format. Changing Standards Each year, most standards bodies publish revisions to the standards. This poses a problem to EDI users. You may be using one version of the standard while your trading partners are still using older versions. EDI is Too Expensive Some companies are only doing business with others who use EDI. If a company wants to do business with these organizations, they have to implement an EDI program. This expense may be very costly for small companies. Limit Your Trading Partners Some large companies tend to stop doing business with companies who don't comply with EDI. For example Wal Mart is only doing business with other companies that use EDI. The result of this is a limited group of people you can do business with. Some major sets of EDI standards: The UN-recommended UN/EDIFACT is the only international standard and is predominant outside of North America.

The US standard ANSI ASC X12 (X12) is predominant in North America. The TRADACOMS standard developed by the ANA (Article Numbering Association now known as GS1) is predominant in the UK retail industry. The ODETTE standard used within the European automotive industry

Since EDI is commonly defined as the direct computer-to-computer exchange of standard business forms, it clearly requires a business process. Because the key idea involved is the exchange of documents that allow a business application to take place without human intervention, data processing is clearly necessary for application processing. Data communication is then necessary for the exchange to take place. It is the marrying of these three disciplines that allows the "paperless trading" that comprises EDI technologies. Besides the three career disciplines that are internal to the organization, three other issues are important for EDI trading to take place: standardization of formats, security, and value-added networks (VANs). WEB BASED TOOLS FOR e-COMMERCE experience and /or training in Web design (unless you go with the template or wizard-based tools that many all-inclusive services offer) a good computer with plenty of RAM (128 Mb and up) and hard drive space (6 GB minimum) web design software -- or a text editor (if you know html) a scanner or digital camera -- for product or service photos image editing software illustration software to create graphics FTP software for uploading files to your Web site a database of product names, descriptions, pricing, and photos a system for establishing product numbers a system for inventory management technical know-how in incorporating the database into your Web site Concepts for Web Hypertext way of formatting pages with embedded links that connect documents and links pages to other objects HTTP protocol to transmit web pages over Internet URL addresses at web pages can be found HTML programming language used to create most web pages. It has fixed set of tags used for formatting web pages XML markup language that allows describing data & info Web server software software that enables the delivery of web pages to the clients. It also provides security services, FTP, search engine, and data capture services. Web clients devices capable of making HTTP request and displaying HTML pages.

Web browsers displays web pages and added features like e-mail, newsgroup etc. Features/tools supporting e-commerce E-mail- uses a series of protocol to transfer messages containing text, images, sound, video Search engines- identifies web pages matching a query. FTP - Part of TCP/IP which permits transfer of files from server to client and vice versa. Intelligent agents (BOTS)- s/w programs that gather/filter information on a specific topic Chat- real time communication b/w users Streaming media- enables music, video and large files to be send to the users in chunks for an uninterrupted display Cookies- small text files that allow a website to store information about a user, and are used as an marketing tool for e-commerce Active server pages(ASP)-sever side programming Common gateway interface(CGI) -set of standards b/w a browser and program running on a server that allows for interaction b/w server and user Java, JSP, JavaScript-To create interactivity and active content on client side Order Managers- useful when you sell too much, to handle the complexities of fulfilling, drop-shipping, returns, cancellations, split orders Customer on-site tracking- enables a site to create a site log for each customer visit, aiding in personalizing the shopping experience Site tracking and reporting system- monitors the number of unique visitors, pages visited and products purchased Inventory management system- provides a link to production and suppliers to facilitate order replenishment

Electronic Data Interchange (EDI) is the transmission between businesses of information in standard, computer-readable format. It includes electronic order placement, electronic shipping notification, electronic invoicing, and many other business transactions that computers can actually perform better than people. Companies began implementing EDI once they understand the importance, It has evolved into an essential business tool today. If your company is not doing business using EDI, we believe you can benefit. With EDI you can experience greater efficiency for your company and from Customers.